NEW YORK, May 23, 2026, 14:05 EDT
Sprouts Farmers Market Inc. shares posted a small weekly gain heading into the Memorial Day weekend. The stock bounced Friday, recovering some ground after slipping midweek as investors debated the grocer’s store expansion versus softer comparable sales.
Next week, U.S. markets lose a day with Monday closed for Memorial Day, according to Nasdaq’s 2026 schedule. Trading the rest of the week sticks to the normal 9:30 a.m. to 4 p.m. ET hours.
SFM finished Friday at $86.71, up $1.32, or roughly 1.5%, from Thursday’s close. Shares traded between $84.01 and $87.57, with about 2.17 million shares changing hands. The stock gained around 1.4% since last Friday’s close at $85.51. SFM hit $94.89 on Tuesday but lost much of that gain by week’s end.
The stock traded higher in line with broader equities. U.S. markets finished their eighth week of gains, according to The Associated Press. The S&P 500 added 0.4% Friday, the Dow rose 0.6%, and the Nasdaq Composite gained 0.2%.
Sprouts Farmers Market’s quarterly numbers from April 29 are still what investors lean on. The company, based in Phoenix, posted a 4% rise in first-quarter net sales to $2.3 billion, while same-store sales dropped 1.7%. Sprouts opened six locations during the quarter and closed March with 483 stores across 25 states. It is sticking with plans to add at least 40 stores this year.
Sprouts CEO Jack Sinclair said, “The first quarter played out largely as we expected.” On the earnings call, Sinclair told analysts Sprouts was facing “tough comparisons and a cautious consumer backdrop,” but said he sees things getting better as 2026 goes on. Sprouts Investor Relations
Sprouts is sticking with the growth and cash return story. The company guided to full-year net sales growth between 4.5% and 6.5% on a 52-week basis. It sees diluted earnings per share landing in the $5.32 to $5.48 range—earnings per share is just profit divided by shares out. In the first quarter, Sprouts bought back 1.9 million shares for $140 million.
Chief Financial Officer Curtis Valentine told investors the sales increase was driven by “strong new store performance,” but said this was partly offset by a drop in comparable sales. E-commerce rose 10% and made up around 16% of quarterly sales. Sprouts’ own label products accounted for over 26% of total sales. Q4 Capital
Kroger is set to trim prices on thousands of items, CEO Greg Foran told Reuters, saying the company needs to get its basket price down as it tries to claw back share from Walmart, Costco, and others. “The reality is, the basket has to come down,” Foran said. Reuters
Sprouts is feeling that read-across. The company has started to adjust prices on some core products and is ramping up its loyalty program, according to Grocery Dive’s report after the earnings call. Value isn’t only for discounters now.
Sprouts is warning that discounts and loyalty perks could squeeze margins before they win shoppers back. The grocer is guiding for second-quarter comparable sales between down 2% and flat. It sees earnings per share at $1.32 to $1.36. Management pointed to pressure on margins from lower comparable sales, more loyalty spending and higher fuel bills. Profit margin is the share of sales left after covering costs.
Retail takes the spotlight this week, not just Sprouts. U.S. markets are closed Monday. Trading resumes Tuesday with Costco and Best Buy on the earnings slate. Food retailers could react to grocery-pricing headlines following Kroger’s move.
